A « just right » April employment report showing cooling job and wage gains has given hope that the Fed could cut interest rates sooner than later.
U.S. markets ended the week on a high note as treasury yields fell after the April jobs report came in weaker-than-expected, giving hope to investors that the Fed could cut rates sooner rather than later.
The Dow jumped 450 points to close higher by more than 1%, while the Nasdaq gained 2%. The S&P also ended higher by more than 1%.
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Friday’s labor report for April showed 175,000 jobs added for the month, significantly below estimates of 250,000, while wage gains moderated. The unemployment ticked up to 3.9% from 3.8% in March.
The Fed had been looking to see the job market cool before it could start cutting interest rates, which is why the soft labor market data sent stocks surging.
